SEC Examines Funds of Hedge Funds

WSJ – The Securities and Exchange Commission is examining whether firms that collect fees for funneling investors into hedge funds are properly overseeing client money and dealing with potential conflicts of interest, people familiar with the matter said.

The inquiry has identified about a dozen investment-advisory firms for questioning but could expand, according to people familiar with the matter, making it one of the SEC’s broadest examinations ever of funds of hedge funds and advisers specializing in hedge funds.